THE Australian dollar is higher on the back of stronger-than-expected Chinese gross domestic product figures.

The Australian dollar has been pushed back above 88 US cents by stronger-than-expected Chinese gross domestic product data.

At 0700 AEDT on Tuesday, the Australian dollar was trading at 88.03 US cents, up from 87.79 cents on Monday.

China's economy grew 7.7 per cent last year, according to official figures, beating economists' expectations of 7.6 per cent. "While the data shows China's economy losing momentum towards the end of the year, the slowdown was not as large as economists had feared," BK Asset Management managing director Kathy Lien said. "There's no escaping the reality that China is losing its mojo, but this is part of their plan to focus on domestic growth and structural reforms over the next five to 10 years.

"The only upside is that the slowdown is gradual, which is apparently enough to trigger a relief rally in the Australian/US dollar."